The Nigeria Employers’ Consultative Association has expressed worry that the recent ban imposed on the production and sale of sachet alcohol and polystyrene food packs will lead to job losses in the real sector of the economy.
Speaking with The PUNCH, the Director-General of The Nigeria Employers’ Consultative Association, Adewale-Smatt Oyerinde, predicted that the ban on these products would have potential repercussions on Nigeria’s fragile economy.
He warned that the consequences of massive job losses across sectors would continue to create insecurity challenges and increase the occurrence of child labour, among others.
Oyerinde said, “This has dire consequences not only for organised businesses but also for labour, government revenue and the households.
“The consequences of these massive job losses across sectors will continue to create insecurity challenges, increase the occurrence of child labour, adversely affect the disposable income of families, erode the purchasing power of individuals and drastically reduce the economy’s output.”
Speaking further, Oyerinde noted the ban on the production and sale of those products was not only ill-advised but also ill-timed given the current economic situation, the rate of unemployment and the likely loss of investment by manufacturers of those products.
He called on NAFDAC to reverse the ban and advocated for further dialogue with relevant associations, particularly the Distillers Association, the Road Transport Employers Association of Nigeria, National Union of Road Transport Workers, among others, to avoid the negative economic and social consequences of the ban.
The ban by NAFDAC on sachet and PET bottles alcohol came on the heels of a decision by the Lagos State Government to ban the distribution and use of polystyrene (Styrofoam) and other single-use plastics in its domain.
The decision was met with criticism from the Manufacturers Association of Nigeria, which warned of the potential impact the ban would have on the sub-sector, employment-wise.
Recently, the International Labour Organisation projected that two million workers may lose their jobs this year, as the global unemployment rate will be up from 5.1 per cent in 2023 to 5.2 per cent.
In the latest report titled ‘World Employment and Social Outlook: Trends 2024,’ the ILO stated that joblessness and the jobs gap had fallen below pre-pandemic levels, but global unemployment would rise in 2024.
It added that growing inequalities and stagnant productivity were causes for concern.
The global unemployment rate has dropped in three consecutive years, declining from 6.9 per cent in 2019 to 5.1 per cent in 2023.
